The Merits Of Working With Atlanta Private Lenders For Real Estate
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Most people who apply for a mortgage these days face challenges because of the strict requirements imposed by financial institutions. People who are unable to qualify for traditional mortgages can choose to get financing from a private lender. Private loans for buying real estate, also known as hard money loans are offered by ordinary citizens. In order to find Atlanta private lenders for real estate, investors may join a real estate investment club or request their relatives or friends to refer them to such lenders.
Opting for hard money loans, especially if you cannot qualify for a typical mortgage due to a poor credit history is wise. These loans can also be ideal if you are self employed and you cannot show that you have a stable source of income. The property you wish to purchase will act as the collateral. You can therefore qualify for credit if the property is likely to gain profit.
The repayment period for hard money loans is much shorter than that of conventional mortgages. The reason for this is that the lenders seek to get quick returns on the money they have loaned out. The loans are set up to be repaid within a few months or years.
It can be convenient to get a loan with a repayment period of 2 years or less. For example, investors can apply for it if they plan to sell the house within a short period. With such a loan, investors can buy a property and sell it for a profit.
You may also apply for a hard money loan if you expect to qualify for a conventional refinance a few months after acquiring the house. Applying for such a loan can also be a good idea if you plan to carry out renovations that will increase the value of the house. You can then sell or refinance the property.
The other time when you can apply for hard money loans is when you want to complete a large scale remodeling project on your property. It can be hard to qualify for a typical mortgage even with a good credit score. Fortunately, a hard money loan will enable you to renovate your house.
The approval process for hard money loans is also shorter. The lenders usually approve them within a few weeks instead of thirty or forty five days, which is the norm for conventional mortgage loans. Most investors find it convenient to have their loans approved fast, although they will pay a higher interest rate. Private loans for real estate have a higher interest rate because anyone can qualify for them regardless of his or her credit score.
Opting for hard money loans, especially if you cannot qualify for a typical mortgage due to a poor credit history is wise. These loans can also be ideal if you are self employed and you cannot show that you have a stable source of income. The property you wish to purchase will act as the collateral. You can therefore qualify for credit if the property is likely to gain profit.
The repayment period for hard money loans is much shorter than that of conventional mortgages. The reason for this is that the lenders seek to get quick returns on the money they have loaned out. The loans are set up to be repaid within a few months or years.
It can be convenient to get a loan with a repayment period of 2 years or less. For example, investors can apply for it if they plan to sell the house within a short period. With such a loan, investors can buy a property and sell it for a profit.
You may also apply for a hard money loan if you expect to qualify for a conventional refinance a few months after acquiring the house. Applying for such a loan can also be a good idea if you plan to carry out renovations that will increase the value of the house. You can then sell or refinance the property.
The other time when you can apply for hard money loans is when you want to complete a large scale remodeling project on your property. It can be hard to qualify for a typical mortgage even with a good credit score. Fortunately, a hard money loan will enable you to renovate your house.
The approval process for hard money loans is also shorter. The lenders usually approve them within a few weeks instead of thirty or forty five days, which is the norm for conventional mortgage loans. Most investors find it convenient to have their loans approved fast, although they will pay a higher interest rate. Private loans for real estate have a higher interest rate because anyone can qualify for them regardless of his or her credit score.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Residential Lending options in Atlanta he suggests you click here for more information.
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